Accountant or bookkeeper
A bookkeeper records your day-to-day transactions, such as sales, costs, payroll and VAT records. An accountant usually prepares year-end accounts and tax returns and can advise on tax. Many small businesses use both, or one firm that does both.
Qualifications
Anyone can call themselves an accountant. Chartered and certified accountants belong to professional bodies such as ICAEW, ACCA, ICAS or CIMA, which set standards and deal with complaints. Bookkeepers may be members of the Institute of Certified Bookkeepers or the Association of Accounting Technicians. Ask which body they belong to and check with that body.
Money laundering supervision
Every business that offers accountancy or bookkeeping services must be supervised for anti-money laundering, either by a professional body or by HMRC. Ask who supervises them. They must check your identity before they start work for you.
Audits
Only a registered auditor can carry out a statutory audit. Most small companies do not need one, but check whether yours does.
Engagement letter and fees
Get a written engagement letter that sets out what they will do, what you must provide and by when, and the fees. Ask whether the fee is fixed or hourly, and what costs extra, such as dealing with an HMRC enquiry.
HMRC and deadlines
An accountant needs your authorisation to deal with HMRC for you. You stay legally responsible for your tax return and for paying on time, even if someone else prepares it.
Making Tax Digital for Income Tax started in April 2026 for some sole traders and landlords, depending on their income, and is being extended in stages. Check whether it applies to you on gov.uk.